Federated National Insurance

Federated National Insurance
Wednesday, January 18, 2017

Reinsurance Program

Federated National Insurance Company

Federated National has a reinsurance program that affords its policyholders approximately $2.22 billion of aggregate coverage, with a maximum single event limit of approximately $1.5 billion. This reinsurance program, at a cost of approximately $179.5 million, is designed to reimburse Federated National for losses incurred by our homeowner policyholders’ resulting from one or more catastrophic events, including hurricanes. Reinsurance is insurance for insurance companies. We utilize reinsurance to protect our existing capital and reduce our earnings volatility while significantly decreasing our financial exposure to hurricanes.

Property Catastrophe Excess Reinsurance Program
Effective July 1, 2016
Reinsurer Name AM Best Rating S&P Rating Surplus Amount (USDmn)
United States Markets
American Agricultural Insurance Company A- NR 554.5
American Family Mutual Insurance Company A NR 6,608.4
Everest Reinsurance Company A+ g A+ 3,308.0
Odyssey Reinsurance Company A A- 3,168.8
Partner Reinsurance Company of the US A g A+ 1,420.3
QBE Reinsurance Corporation A p A+ 829.3
RLI Insurance Company – a Division of RLI Insurance Company A+ A+ 897.7
Swiss Reinsurance America Corporation A + g AA- 3,575.8
The Cincinnati Insurance Company A+ A+ 4,533.7
Transatlantic Reinsurance Company A A+ 4,935.4
 
Bermuda Markets
Allied World Assurance Company, Limited A A 4219.0
Amlin AG, Switzerland, Bermuda Branch A u A 1567.7
Arch Reinsurance Limited A+ A+ 7,246.6
Argo Re Ltd A NR 1,261.1
Ariel Reinsurance Bermuda Ltd for and on Behalf of Ariel Syndicate 1910 (ARE) A A+ 255.9
Ascot Underwriting (Bermuda) Limited/AIG per AIRCO agreement A A+ 988.6
Aspen Bermuda Limited A g A 2,205.5
AXIS Specialty Limited A+ A+ 4,298.2
Brit Bermuda (BGS Services (Bermuda) Limited/Lloyds Syndicate 2987) A A+ 1,580.3
Chubb Tempest Reinsurance Ltd. A++ AA 6,974.9
DaVinci Reinsurance Ltd. A AA- 1,412.3
Endurance Specialty Insurance Ltd. A A 5,262.0
Fidelis Insurance Bermuda Ltd. A- NR 1,181.8
Hamilton Re, Ltd. A- NR 1,484.70
Hiscox Insurance Company (Bermuda) Limited A A 848.4
Partner Reinsurance Company Limited A A+ 3,655.0
Q Re A A 1,597.8
Renaissance Reinsurance, Ltd. A+ AA- 1,800.00
Tokio Millennium Re AG, Bermuda Branch A++ A+ 1,199.3
XL Bermuda Ltd  A g A+ 3,632.8
 
European Markets
Allianz Risk Transfer AG, Bermuda Branch (obo Nephila) A+ g AA- 646.2
Lansforsakringar Sak Forsakringsaktiebolag (publ) NR A 229.0
Liberty Syndicate Management Limited, Paris for and on behalf of Lloyd’s Syndicate 4472 (LIB) A A+ 1,702.3
Lloyd’s of London A A+
Acapella Syndicate Syndicate (2014) (ACA) A A+ 198.8
Amlin Syndicate (2001) (AML) A A+ 2,058.0
Antares Syndicate (1274) (AUL) A A+ 350.8
Ariel Re Syndicate (1910) (ARE) A A+ 255.9
Ark Syndicate (4020) (ARK) A A+ 612.0
Ascot Syndicate (1414) (ASC) A A+ 882.0
Barbican Syndicate (1955) (BAR) A A+ 294.0
Beazley Syndicate (623) (AFB) A A+ 379.3
Beazley Syndicate (2623) (AFB) A A+ 1,678.7
Canopius Syndicate (4444) (CNP) A A+ 1,154.4
Canopius Syndicate (958) (CNP) A A+ 288.6
Cathedral Syndicate (2010) (MMX) A A+ 468.2
Catlin Syndicate (2003) (SJC) A A+ 2,363.0
Chaucer Syndicate (1084) (CSL) A A+ 1,185.6
China Re Syndicate (2088) (CNR) A A+ 131.0
Dale Syndicate (1729) (DUW) A A+ 117.0
Faraday Syndicate (435) (FDY) A A+ 612.0
Hiscox Syndicate (33) (HIS) A A+ 1,661.0
MAP Syndicate (2791) (MAP) A A+ 624.0
Markel Syndicate (3000) (MKL) A A+ 780.0
Novae Syndicate (2007) (NVA) A A+ 1,071.0
Renaissance Re Syndicate (1458) (RNR) A A+ 448.8
Vibe Syndicate (5678) (VSB) A A+ 49.0
New India Assurance Company Limited A- NR n/a
 
Asia/Pacific Rim Markets
China Reinsurance (Group) Corporation A A+ 6.804.8
Fubon Insurance Co., Ltd. A A- 1,071.0
General Insurance Corporation of India, trading as GIC Re A- NR 6,706.3
Peak Reinsurance Company Ltd A- NR 716.9
Pioneer Underwriting Ltd (Pioneer CAT USDF) / Peak Reinsurance Company Ltd A- NR 716.9
Pioneer Underwriting Ltd (Pioneer CAT USDF) / Taiping Reinsurance Co., Ltd. A A 799.0
 
Hedge Funds/Collateralized Markets
Aeolus Reinsurance Ltd NR NR *
Coriolis Capital Limited NR NR *
Elementum Advisors NR NR *
Eskatos Capital Management (Utilizing Hannover Rueck SE) NR NR *
Hudson Structured NR NR *
LGT Capital NR NR *
Pillar Capital Management Limited (Utilizing Hannover Ruckversicherung-Aktiengesellschaft AG) A+ AA- 6,182.8
Securis Capital (London) NR NR *
* Reinsurance company has already pledged the full resources that Federated National may need in the event of a claim(1) United States reinsurers surplus as of March 31, 2015. All others are as of December 31, 2014.* Reinsurance company has already pledged the full resources that Federated National may need in the event of a claim

Monarch National Insurance Company

Monarch National has a reinsurance program that affords its policyholders approximately $28.55 million of aggregate coverage, with a maximum single event limit of approximately $18.40 million. This reinsurance program, at a cost of approximately $1.415 million, is designed to reimburse Monarch National for losses incurred by our homeowner policyholders’ resulting from one or more catastrophic events, including hurricanes.

Property Catastrophe Excess Reinsurance Program
Effective June 1, 2016
Reinsurer Name AM Best Rating S&P Rating Surplus Amount (USDmn)
United States Markets
Odyssey Reinsurance Company A A- 3,168.8
Transatlantic Reinsurance Company A A+ 4,935.4
 
Bermuda Markets
DaVinci Reinsurance Ltd. A AA- 1,412.3
Renaissance Reinsurance, Ltd. A+ AA- 1,800.0
 
Hedge Funds/Collateralized Markets
Pillar Capital Management Limited (Utilizing Hannover Ruckversicherung-Aktiengesellschaft AG) A+ AA- 6.182.8